TRENTON — The good news: Gov. Christie’s budget announcement included no cuts to the Payment in Lieu of Taxes program.

The not so good news: Rural communities will still be paid at levels a third less than what they had once been.

The PILOT program, which has for years paid municipalities for state-owned or tax-exempt open space property, was laid on the chopping block before.

It escaped the same fate this February.

Many counties came together over the past few months to fight what they believed would be the second round of cuts to the PILOT program.

Initially, that budget stood at $9.8 million. As of 2010, approximately a third had been cut out.

“The PILOT program has long served as an integral part of New Jersey’s overall commitment to preserving large expanses of open space in places like the Pinelands, Highlands and the coast,” said Tim Dillingham, executive director of the American Littoral Society.

Much of the area’s effort to defend the $6.5 million PILOT budget was spearheaded by the American Littoral Society.

Matt Blake, of that group’s Delaware Bay Program, was surprised to hear about the level funding and no mention of a phase-out.

“We were able to take a step back and sigh of relief and figure out where do we go from here,” said Blake.

Blake spent months getting local governments to pass resolutions that voiced their opposition to what they believed would be the next cut.

All but one community in Cumberland County — Shiloh — signed on to the petition drive. (Blake said he never heard back from the borough.)

Resolutions were passed by seven towns in Salem and 12 in Cape May counties. Freeholder boards in those two counties and Cumberland signed their support as well.

Funding rates vary depending on the amount of tax-exempt land. If more than 40 percent of a municipality is exempt, then payments are made at $10 per acre. At 60 percent, that total turns to $20.

New Jersey paid $9,824,341.42 in fiscal year 2010 to 294 of the state’s 566 municipalities. Commercial Township, which receives payments at the $10 rate, received $109,000.

Since the threat has passed — at least for now — the nature conservancy group has a chance to regroup and reload.

A meeting between nature groups and Sen. Jeff Van Drew is planned for later this month. Blake said Cumberland County Freeholder Director Bill Whelan was also contacted for this meeting.

The Conservation Fund of New Jersey, the state’s Audubon Society and the Trust for Public Land had all been present at past meetings on the subject.

State Senate President Stephen Sweeney had told Blake the resolutions, which had been forwarded to Trenton, and media attention resonated among lawmakers.

As to where they go from here, reconfiguring the PILOT program is being discussed.Blake explained one long-term approach could call on area lawmakers to tweak the rules and increase incentives for saving open spaces.

He also questioned areas without a local purpose tax.

“Maybe that needs to be looked at,” he said.

The goal to these ends would be saving the state money by adjusting who gets what while avoiding an across the board cut.

Blake said he looked forward to “working with law makers and county officials on how to make this program more effective.”